September 14, 2025 - If you've been watching Warrior Met Coal (HCC) lately, their latest move might have you reconsidering your next steps. The company has just amended and extended its revolving credit facility, increasing available commitments by $27 million and extending the maturity date. This is not just a routine financial adjustment; it is a strategic effort to strengthen liquidity ahead of the Blue Creek project's startup. The project is expected to ramp up production volumes by roughly 75 percent. At the very least, this indicates that management is focused on scaling up operations for the long term. Looking at the stock’s recent performance, Warrior Met Coal has experienced a small dip over the past month but managed a strong rally in the past three months. Even after these recent changes, the stock has returned 5.6 percent over the past year. This is lower than its notable three- and five-year gains, which highlight how much momentum had already been established. The company recently reported annual revenue growth close to 19 percent and net income growth approaching 90 percent, reflecting a business building momentum. Now that Warrior Met Coal is securing more liquidity for a major expansion, the main question is whether these recent actions have left shares undervalued or if the market has already factored in future growth. There is ongoing debate as to whether there is further upside from here, or if the opportunity has already passed investors by.

Most Popular Narrative: 11.9% Undervalued

According to the most widely followed narrative, Warrior Met Coal is currently trading below its estimated fair value, reflecting analyst confidence in future growth and profitability as the Blue Creek project ramps up and operational efficiency improves.

The ahead-of-schedule and on-budget launch of the Blue Creek longwall in early Q1 2026 accelerates Warrior Met Coal's transition from capital investment to higher-volume revenue generation. This unlocks increased production capacity and lower-cost, higher-quality tons. This positions the company to grow both revenues and net margins as volumes ramp and cost efficiencies are realized.

Curious why this stock could be considered a hidden value play? The most popular narrative points to ambitious financial forecasts, bold margin expectations, and a multiple that only makes sense if major growth materializes. What underlying assumptions and future projections really drive this bullish viewpoint? Find out what could turn Warrior Met Coal into a standout performer by examining the game-changing scenarios factored into this compelling valuation case.

Result: Fair Value of $65.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in global steel demand or rising operational costs could threaten the positive outlook for Warrior Met Coal’s future earnings growth.

Find out about the key risks to this Warrior Met Coal narrative.